In January 2014, Vanowski Corporation was organized and authorized to issue 2,000,000 shares of no-par common stock and 50,000 shares of 5 percent, $50 par value, noncumulative preferred stock. The stock-related transactions for the first year’s operations follow.

Required1. For each of these transactions, indicate the account numbers and dollar amounts (as shown in the example) for the account(s) debited and credited, using the account numbers that follow.110 Cash120 Land121 Building220 Dividends Payable305 Preferred Stock310 Common Stock312 Additional Paid-in Capital313 Paid-in Capital, Treasury Stock340 Retained Earnings341 Dividends350 Treasury Stock, Common510 Start-up and Organization Costs2. Why is the stockholders’ equity section of the balance sheet an important consideration in analyzing the performance of acompany?